The parametric method would be used at the budget preparation stage, but relies on good historical data-based past jobs or experience. By using well-known empirical formulae or ratios in which costs can be related to specific characteristics of known sections or areas of the project, it is possible to produce a good estimate on which firm decisions can be based. Clearly such estimates need to be qualified to enable external factors to be separately assessed. For example, an architect will be able to give a parametric estimate of a new house once he is given the cube (height x length x depth) of the proposed building and the standard of construction or finish. The estimate will the be in £/cubic metre of structure. Similarly, office blocks are often estimated in £/square metre of floor space. The qualifications would be the location, ground conditions and costs of the land etc. Another example of a parametric estimate is when a structural steel fabricator gives the price of fabrication in £/tonne of steel depending whether the steel sections are heavy beams and columns or light lattice work. In both cases the estimate may or may not include the cost of the steel itself.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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